Convention of Statesmen

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What Now? The Debt Debacle continues to spiral downward.

China currently owns $1.1 trillion of U.S. debt, I am certain that's about to go up to $3.5 trillion as Obama turns to his favorite creditor to get more money for his programs.

As of April of 2011, US Treasury bonds owned overseas accounted for $4.5 trillion of the national debt - up 10% on June last year. The U.S. now owes over $14.5 trillion. (We owed $7.8 trillion in 2005, to an exploding $14.5 trillion as of today.) China is the biggest owner of U.S. Treasury bonds - over $1.152 trillion by April this year - up 4% on last year. (Source Guardian.co.uk)

And what is China's response to this? A stern warning to Barack Obama, because he is our missing president, on this subject, to get our fiscal house in order and they, ever so slyly, recommend that we start with the American military, the greatest in the world, which they fear. Their motivation is clear, they've watched Congress as they weakened America's economy, now China slides right in and begins chipping away at the president and Congress to begin those fiscal cuts in the military budget. 

Normal Americans, you and I, would laugh in the face of the Chinese, pay them their $1.152 trillion and walk away. But we cannot be assured Barack Obama or the Democrats would do such a common-sense thing. I cannot assume they will stand for America before all other nations, because they haven't done anything smart in years, decades even. But what should be done, are all the cuts I recommended in a previous blog, the Chinese be paid back immediately, and then begin paying off the rest of them: 
Japan $906.9 billion, United Kingdom $333 billion, Oil Exporters $221.5 billion, All Other $199 billion, Brazil $206.9 billion, Caribbean Banking Centers $138.1 billion, Hong Kong $122.4 billion, Taiwan $154.5 billion, Russia $125.4 billion, Switzerland $112.4 billion, $87.7 billion, $78.4 billion, Thailand $60.7 billion, Germany $61.3 billion, $40.2 billion, South Korea $30.8 billion, India $42.1 billion, Mexico $26.7 billion, France $20.3 billion, Belgium $31.6 billion, Egypt $13.6 billion, Turkey $37.9 billion, Poland $27.4 billion, Italy $24.8 billion, Norway $21.1 billion, Netherlands $23.6 billion, Colombia $19.8 billion, Israel $19.3 billion, Sweden $21.4 billion, Philippines $23.9 billion, Chile $18.6 billion, Australia $13.1 billion, and last, but not least, little Gadolphin College, bringing up the rear, Malaysia $12 billion. (Source Guardian.co.uk)
The cuts I recommended in the same previous blog, would take care of China right off the bat. If we cut regulations, opened up our energy resources, raised the retirement age for Social Security and Medicare, cut out all fraud in Medicare, cut off all illegal aliens from U.S. Welfare programs, and the U.S. started living within its budget, only taking care of those responsibilities laid out in the U.S. Constitution, Article 1, Section 8, which clearly enumerates the powers of the federal government, then we can not only survive this economic crisis, but we can arise as a phoenix from the ashes, as it were.

But none of these happened. Barack Obama and the Democrats in the U.S. Senate effectively blocked any and all measures that would have prevented the credit rating downgrade we received from Standard & Poor yesterday:

"We downgraded the U.S. credit rating yesterday. It was motivated by a number of political factors: the political gridlock in Washington, D.C. makes us think its difficult for elected officials to put the U.S. on a long term, sustainable economic path. And part of it was because of the fiscal path itself, debt to GDP at the all-in level; states, local governments, federal government and that of liquid assets is about 75% of GDP. And that's going to trend up over the next decade, unless we get additional fiscal measures than what we have on the table right now." John Chambers, Head of Standard & Poor Rating Committee (FoxNews, Neal Cavuto, Cost of Freedom 6 August 2011) "The effectiveness, stability and predictability of American policymaking and political institutions have weakened."

You can thank the Democrat Party, Barack Obama and the Obama Administration for that last sentiment. They have systematically been weakening America for decades, under both the Democrat and Republican parties. (And keep in mind, I am a Conservative Republican and I wholly support the Republican Platform. Although the Utah County Republican Platform is by far and away, the very best.)

And what do others have to say about this untenable situation the United States finds itself in, thanks to the out-of-control spending of the federal government:
"18 countries have been credit ratings than the United States," says Congresswoman Michele Bachmann, presidential candidate, 2012 campaign season. "We have to go back, tear up the debt deal, and do a new deal. The markets said it stinks. The credit rating agencies said it stinks, and that we must now get our fiscal house in order--and the international markets are paying attention. Obama must admit he's failed the American people, put out a statement, a plan to address the market, and he needs to address the American people before Monday morning. He has to stop being AWOL on the economy." (Michele Bachmann, FoxNews, Neal Cavuto, Cost of Freedom 6 August 2011)
And Barack Obama, other than holding press conference after press conference, telling lie after lie, has put nothing of value on the table. The budget he submitted at the first of 2011 was summarily voted down in both the House of Representatives and the U.S. Senate, because it had a $1.5 trillion deficit attached. So what did Barack Obama do? Kept us in Iraq, Afghanistan, and promptly invaded Libya. Our deficit for this year alone, began to climb as America provided all the weaponry, and our soldiers, to the Libya campaign.

In the meantime, Republicans put plan after plan on the table, including the repeal of Obamacare, none of the budgets serious enough to address the issue at hand except the Cut, Cap, & Balance Act of 2011, which STILL went nowhere near far enough in cutting the debt currently crippling the United States of America. But tweaked, meaning, put some $10 trillion in cuts in there, and this would have been the solution to the debt crisis. But Senator Harry Reid (D-NV) immediately began attacking it, rallied the Democrats (not that they needed much rallying) to defeat it in the U.S. Senate. So, our one chance at getting this under control was torpedoed by the Democrats in Congress and the U.S. President, Barack Hussein Obama.

The warnings went out. They came from everywhere, including Standard & Poor themselves, but we were all willfully ignored. They were called in, tweeted, Facebooked, emailed, blogged about, talked about on reputable national shows as well as local ones, both radio and television, and we were still ignored. We were called fearmongers (and I have to say that handle belongs solely to the Democrats), terrorists, hobbits, racists, radicals, even right-wing extremists, simply because we called for some fiscal sanity in the federal government and a return to a constitutionally-limited government.

And what do others have to say about the status of the United States now?
"No one really knows what is going to happen when the futures, and international markets, open tomorrow." Terry Duffy, Chicago Mercantile Exchange Group CEO. "In light of the credit rating downgrade, I believe people will still flock to our treasuries. I think we need to get more clarity as to future regulation so businesses can expand, keep corporate tax rates low, which will be good for America in spending and growing. Downgrade is a little disturbing, I want to know where they were when people trading AAA rating securities that had no business being rated AAA, where were the credit rating agencies then?" (FoxNews, Neal Cavuto, Cost of Freedom 6 August 2011)
"Worst performance I've ever seen by Congress, S&P told them what was going to happen. Don't ever crowd a professional who has to protect their credibility, as S&P had to. Get those guys in Washington, D.C. to do something real and get us a real energy plan in America," said T. Boone Pickens. (FoxNews, Neal Cavuto, Cost of Freedom 6 August 2011)
"On the upside, Canada suffered a downgrade in their credit rating and they got it back, with three years of hard work. Japan also suffered a downgrade but is growing stronger, economically, even with the enormous natural disasters they've been suffering through." Chester Dawson, Wall Street Journal (FoxNews, Neal Cavuto, Cost of Freedom 6 August 2011)
It comes down to this. There are solutions. Real solutions. But will the politicians in Washington, D.C. turn loose of their greedy, grasping need for ultimate power, and instead put America first? Will they seriously put everything on the table and begin slashing programs and departments left and right. I recommend getting rid of every department, except the military, that violates the U.S. Constitution. I am certain we would have our fiscal house in order within a couple of years, if we did that.

Senator Mike Lee (R-UT) has submitted a Balanced Budget Amendment, which Senator Orrin Hatch (R-UT) quickly attached himself to, which would insure future Congresses would be held to these wise fiscal standards, should we ever get them, otherwise we will never pull ourselves out of this downward spiral to bankruptcy.

The Cut, Cap & Balance Act of 2011, if fixed, would do the job. So I call on the U.S. House of Representatives to fight, in earnest, with all the power they have, which is considerable, to get the Cut, Cap & Balance Act of 2011 through the Senate with a veto-proof vote, and on to the desk of Barack Hussein Obama within 21 days.

In addition, I call on them to begin making REAL cuts, beginning at $4 trillion, but better at $10 trillion, to be cut in the next 36 months. I call for business regulations to be lifted, natural resource restrictions lifted and the earnest drilling for oil, natural gas, and mining for clean coal, uranium, and other precious metals to begin immediately. I call for lands being returned to the states and states allowed to plum their own resources. I call for the federal government to recognize it created this unholy mess, and is bound by their oath of office (you know, to protect and defend the U.S. Constitution from all enemies, both foreign and domestic) to return itself to a constitutionally-limited federal government.

I call on the American people, all who believe America was, and still is, the greatest nation on earth; who believe the American dream is worth preserving, that America is worth restoring, that this Congress and this President are there at the behest of the American people, and that recognize their responsibilities in upholding and defending the U.S. Constitution and the United States of America, to wake up. Stand up. Speak up. 

Find those candidates who you know to have a true north, backbones of titanium steel, morals and values which cannot be compromised, and who understand the sacred trust they have been given by both the American people and God. Find those candidates and give them your all to get them elected on 6 November 2012.

And last but not least, I call on Senators Mike Lee (R-UT), Rand Paul (R-KY) and Jim DeMint (R-SC) to continue leading the charge in this fiscal and constitutional battle.


Copyright 2011. All rights reserved by Candace E. Salima.
What Now? The Debt Debacle continues to spiral downward. What Now? The Debt Debacle continues to spiral downward. Reviewed by Candace Salima on Saturday, August 06, 2011 Rating: 5